In 2017, the UK tax revenue as a percentage of GDP rose to 33.3 per cent, up from 32.7 per cent the previous year. This is more than the average rise for Organisation for Economic Co-operation and Development (OECD) nations.
34 out of 36 OECD nations provided data for 2017, from this the UK were among 19 that saw an increase in the tax-to-GDP ratio.
The OECD said: “Tax revenues in these advanced economies increased as taxes on companies and personal consumption make up an increasing proportion of total tax revenues”.
VAT revenues are the largest source of consumption taxes across the OECD, at a record high of 6.8 per cent of GDP and an average 20.2 per cent of total tax revenue in 2016.
The country with the highest tax-to-GDP was France at 46.2 per cent, followed by Denmark at 46 per cent, and then Belgium at 44.6 per cent.
Figures revealed that Mexico has the lowest ratio of 16.2 per cent, far below the next lowest country, Chile, which recorded a ratio of 20.2 per cent.
The following eight nations have seen a rise since 2009, these include; Canada, Estonia, Hungary, Ireland, Lithuania, Norway, Slovenia and Sweden.
The British Chamber of Commerce downgraded their GDP growth forecast from 1.3 per cent to 1.1 per cent for 2018. Similarly, they lowered their forecast from 1.4 per cent to 1.3 per cent for 2019.